developing our natural resources to their full potential for the overall benefit of our community.The reasons for this are not unknown.
Puerto Rico’s energy policy has
remained one-dimensional over the past sixty (60) years.This is one of the reasons energy costs on the island are among the highest and most volatile, incomparison with other jurisdictions. Puerto Rico has no control over the price of fossil fuels.Thus, our economy is subject to the constant fluctuation of world market prices and to the flightof local capital to purchase such fuels. In fact, it is estimated that the current cost of electricpower in Puerto Rico is twice as high as the average cost of electricity in the rest of the UnitedStates, and that the average Puerto Rican pays approximately twenty (20) cents per kilowatt-hour(kWh). Furthermore, it has been determined that this increase in the cost of electricity that PuertoRico has experienced is primarily due to a rise in the cost of petroleum-derived fossil fuels.The high cost and instability of energy is not only detrimental to our quality of life andour environment, but also to our economic competitiveness, as it increases the cost of doingbusiness in Puerto Rico. It is estimated that every dollar increase in the price of fossil fuel perbarrel results in a flight of capital of seventy million dollars ($70,000,000) from our economyevery year. The fact that our great dependence on oil makes the economy of the Nation to whichwe belong dangerously vulnerable, given energy instability, flight of capital, climate change, anda greater risk of attacks from U.S. enemies is of concern to other states also. That is why thePresident of the Unites States, Barack Obama, has pledged to invest $150 billion dollars insustainable renewable energy technology over the next decade. It is estimated that this willgenerate five (5) million direct and indirect jobs for the U.S. economy in upcoming years. InPuerto Rico
case, we estimate that if we increase sustainable and alternative renewable energyproduction, pushing new legislation such as this one, we will be able to create a robust, newrenewable energy industry and thousands of new direct and indirect jobs.
Renewable Portfolio Standard
At present, twenty-nine (29) states, along with Washington DC, have adopted the conceptof the renewable portfolio standard, while five (5) other states have set
that they have pledged to fulfill. Compulsory goals to reduce the use of conventional energy andincrease the use of renewable energy are known as a
Renewable Portfolio Standard
In fact, the United States Congress is evaluating legislation that, if passed, would establish anationwide renewable portfolio standard. Pursuant to this, and in order to take the preventivemeasures necessary to ensure compliance on our part, this Act establishes a system of goalssimilar to those currently proposed in the Renewable Portfolio Standard that may be imposed bythe federal government. In order to achieve an energy policy rooted in the principles of sustainable development, many countries have adopted policies that promote the use of sustainable and alternative renewable energy sources and establish the specific percentages of renewable energy that companies selling electricity must produce or consume.In keeping with this trend, this Act creates for the first time in Puerto Rico a RenewablePortfolio Standard and lays down specific requirements and percentages of electricity fromsustainable and alternative renewable energy sources that the Puerto Rico Electric PowerAuthority (PREPA) and other retail energy providers must provide over the next twenty-five (25)